March 28, 2017

Lending to minority borrowers, residents of Gateway Cities is on the rise

MassHousing’s lending to key market segments is up in recent years.

The percentage of MassHousing home mortgage loans made to minority borrowers has risen steadily by about two percentage points per year, from 12% in fiscal year 2013 to more than 18% in fiscal year 2016. For the current fiscal year (which ends June 30), 20.5% of loans (446 loans for more than $110 million) have been made to minority borrowers. Borrowers are not required to disclose their ethnicity, and these figures are for loans where the ethnicity was known to MassHousing.

"We are working with our business partners to increase lending to minority borrowers," said Lisa Fiandaca, Director of HomeOwnership Production. "Historically, minority borrowers were disproportionately harmed by subprime lending and we offer a better product for the consumer that can give them peace of mind and a successful homeownership experience over the long term."

Meanwhile, MassHousing’s home mortgage lending in the Commonwealth’s 26 Gateway Cities is up by more than 26% over last year. With three months still left to go in the 2017 fiscal year, 831 borrowers in Gateway Cities have already closed $175 million in loans, compared to 655 borrowers last fiscal year. The top five Gateway Cities, in terms of the number of MassHousing home mortgages made so far this year, are Worcester (100), Springfield (62), Haverhill (53), Lynn (52) and Lowell (51). MassHousing and other public agencies have made investing in Gateway Cities a priority.